The Hershey Company reported a sharp 59,9% drop in net income for the fourth quarter of 2025, which settled at $320 million. Margins were squeezed by higher raw material costs and tariffs, as well as lower volumes, although the company managed to partially offset these impacts through price realization, improved supply chain productivity, and cost savings.
In the same quarter, the company reported consolidated net sales of $3.091 million, a 7,0% increase compared to the same period last year, driven by organic growth of 5,7% and positive effects from acquisitions and foreign exchange.
For the fiscal year 2025 as a whole, net sales increased by 4,4%, totaling $11.692,6 million, while net income and adjusted earnings per share registered a significant reduction, highlighting challenges in the cost environment and operational performance.
Performance by regions
The International segment, which includes markets outside North America, including Europe, recorded net sales of approximately $941,6 million, slightly below the $947,9 million of 2024, representing a decrease of 0,7%. In the fourth quarter, this segment showed slight sales growth of 0,4%, but recorded an operating loss, reflecting squeezed margins.
North America continued to be Hershey's primary growth driver, with strong performance in the chocolate and savory snack segments, supported by pricing, promotion, and brand acceptance strategies.
Outlook for 2026
For 2026, Hershey projects net sales growth of between 4% and 5%, supported by product innovations, pricing strategies, and marketing investments. The company anticipates adjusted earnings per share (diluted) of between $8,20 and $8,52, while reported earnings per share are expected to be between $7,77 and $8,19, representing a significant recovery compared to 2025.
The company emphasizes that it will continue to invest in operational and technological capabilities, aiming to sustain growth and recover margins in the face of high raw material costs.
